Aptiv Plc is on track to open two plants in China this year amid the automotive technology supplier’s ongoing efforts to localize production and technology development in the country.
An Aptiv subsidiary, Intercable Automotive Solutions, will start producing high-voltage cooper and aluminum busbars ― a key component in high-voltage electrical vehicle architecture ― at a factory in Shanghai in July, said Simon Yang, president of Aptiv China and Asia Pacific.
Aptiv is also expecting to open a major factory in the central Chinese city of Wuhan in the third quarter to build high-voltage connectors for vehicles.
Later this year, the company plans to start construction on a plant in China to expand local production of active safety products, Yang noted at an April 22 media briefing.
Aptiv operates 21 factories and three tech centers in China, with the number of local employees exceeding 33,500.
While ramping up local production, Aptiv has made key investments to strengthen its local technology development capabilities.
In 2024, it established an R&D center in the east China city of Changshu and acquired an 18 percent interest in Chinese intelligent driving technology developer Maxieye Automotive Technology Co. for 570 million yuan ($78 million).
In this episode of the Ally All Ears Podcast, Aaron Lee, Senior Director at Ally Dealership Insurance, discusses the growing threat of cyberattacks on dealerships and the importance of staying vigilant. He shares essential tips for safeguarding against these risks and highlights the need for specialized cyber insurance coverage to protect your business.
A software subsidiary, Wind River Systems, also set up a product development center in Shanghai last year.
To further localize operations, Aptiv is preparing to establish a data center and a technology testing center in China, Yang said.
“We are advancing our localization strategy at full speed in China. By leveraging Chinese technologies, talent, speed, costs and supply chains, we are instituting comprehensive, thorough and complete Chinese solutions,” he said at the briefing.
Separately, Aptiv said May 1 that it swung to a net loss of $11 million during the first quarter compared with net income of $218 million a year ago. Revenue slipped 2 percent to $4.8 billion. Adjusted operating income improved 5 percent to $572 million.
“Our solid first quarter performance validates our industry-leading portfolio, global capabilities, and relentless focus on operational excellence,” CEO Kevin Clark said in a statement. “The company delivered record first quarter adjusted earnings per share, driven by strong execution and proactive capital allocation initiatives. As we navigate through near-term geopolitical uncertainties, our robust business model allows us to remain agile and responsive in a dynamic macroenvironment. Longer-term, we remain well-positioned to enable the electrified, software-defined, and connected future across industries.”
